Why More Businesses in 2023 Will Outsource Their Software Development to Latin America

Centers in Various Regions and Worldwide Growth

In recent times, there has been an increasing trend of organizations in the United States and Europe setting up hubs in Latin America to enable their international development. This is a result of businesses looking for ways to reduce costs, accelerate their market presence, and bridge any gaps in their internal expertise. It is predicted that Latin America will become a popular tourist destination in 2023, indicating the region’s growing importance for global business.

In recent years, an increasing number of corporations have been realizing the advantages of outsourcing their software development to companies based in Latin America, with predictions suggesting that this trend will continue to gain momentum over the next few years. By 2023, it is anticipated that there will be a notable surge in the number of organizations choosing to outsource their software development to Latin American firms, for the following five reasons:

Reduced Expenses

As businesses everywhere strive to reduce costs, outsourcing software development has become an increasingly popular option. Accelerance’s 2023 Guide to Global Software Outsourcing Rates provides comprehensive information on the salaries of a variety of technical roles around the world. It is worth noting that Latin American countries tend to offer much lower rates than those available in the North American market – for instance, developers in this region tend to cost significantly less than those found in the United States.

  • Pay for a junior developer in the US ranges from $95.91 to $101.13 per hour, while in Latin America it is $25.91 to $35.31 per hour.
  • It costs $120–127 an hour to hire a middle-level developer in the United States, but just $35–45 in Latin America.
  • The going rate for a senior developer in the United States is $140–$148 per hour, whereas in Latin America the rate is $35–$50.
  • Pricing for entry-level QA positions in the US and Latin America are quite different.
  • Pricing for mid-level quality assurance analysts in the US is from $90 to $95 per hour, whereas in Latin America it is closer to $30 and $40.
  • QA specialists make $130–$154 per hour in the United States, but just $35–$45 in Latin America.

Companies who are looking to optimise costs could find that investing in Latin American developers is a viable solution, as they are able to provide quality services at competitive prices.

It’s Quite Convenient to Use.

Through collaboration with the United States of America, Latin American nations possess a distinct advantage over their Asian counterparts in many ways. Working in synchrony is effortless, given that the countries of the Americas are not separated by time zones, meaning that businesses in the US may collaborate with Latin American developers without having to alter the times of day for their efforts. There is also the advantage of cultural compatibility; Latin American nations share many similarities with their neighbors in North America in terms of their working etiquette, which reduces the potential for cultural barriers. Finally, as the Deloitte study on outsourcing stated, the governments of Latin American countries continue to actively encourage free trade and provide English language assistance programs, in order to attract global service providers and businesses.

Confidence is growing in the area, which is a positive trend.

The results of a Deloitte survey on outsourcing have revealed that 78% of participants reported being satisfied with their outsourcing partnerships. Furthermore, the survey also revealed that corporate leaders intend to increase their level of outsourcing by a margin of between 14% and 36%. In addition, Deloitte’s research has also highlighted that Latin American countries are emerging as regional powerhouses, and the growing demand from the US market for outsourcing services provided by firms in the Latin American region is indicative of the confidence that these companies have in their capability to facilitate the growth of American businesses.

Physical Proximity

Many corporations find it easier to travel to Latin American locations to connect with their outsourcing partners than those in Asia. According to Eduardo Araujo, Vice President and General Manager of HP Enterprise Services, this is partly due to the rapidly growing market for outsourcing in Latin America, as it is on the same time zone as the rest of the Americas. This allows American businesses to benefit from round-the-clock service from Latin American developers, who they can have a close working relationship with.

Powerful Foundations

Buenos Aires and Santiago are two of the most prominent cities in Latin America and both have robust infrastructures which make them desirable partners for outsourcing. With a high reliance on telephone and online communication, it is essential to work with a business located in a region that has reliable, consistently fast internet access.

Companies of all sizes are recognizing the benefits of outsourcing software development to Latin American firms, and the trend is expected to continue over the coming year. This is due to the region’s well-documented reputation for being accommodating to businesses, delivering high-quality work and offering competitive prices. We anticipate that this will result in an increase in partnerships between businesses and Latin American outsourcing firms.

Join the Top 1% of Remote Developers and Designers

Works connects the top 1% of remote developers and designers with the leading brands and startups around the world. We focus on sophisticated, challenging tier-one projects which require highly skilled talent and problem solvers.
seasoned project manager reviewing remote software engineer's progress on software development project, hired from Works blog.join_marketplace.your_wayexperienced remote UI / UX designer working remotely at home while working on UI / UX & product design projects on Works blog.join_marketplace.freelance_jobs